The Hindu Business Line : HCL Tech net income rises 49 pc in July-Sept

Growth track Company's BPO arm registers growth of 50 per cent from Indian operations and a major client win in legal process outsourcing Revenues grew by 42.1 per cent in July-September to Rs 1,379.5 crore from Rs 970.7 crore in the same corresponding period last year

New Delhi , Oct. 16

HCL Technologies on Monday reported a net income increase of 49.4 per cent year-on-year (YoY) to Rs 250.2 crore for the quarter ending September 30.

Net income was Rs 167.5 crore in the corresponding quarter last fiscal.

The revenues grew by 42.1 per cent to Rs 1,379.5 crore from Rs 970.7 crore in the same corresponding period last year. The net income, however, does not take into account the gains on treasury investments of Rs 53.7 crore and the non cash-employees stock option charge of Rs 21.1 crore.

The company also announced an interim dividend of 200 per cent.

"The core software and infrastructure services grew by 11 per cent sequentially, which follows a 13 per cent sequential growth last quarter. The YoY revenue growth for this quarter in these businesses has been 43 per cent fuelled by our infrastructure services, 17 per cent sequential and 88 per cent increase in revenue," said Mr Vineet Nayar, President, HCL Technologies.

BPO arm

The company's BPO arm also registered a growth of 50 per cent in revenues YoY from its Indian operations and a major client win in the legal process outsourcing.

"The quarter saw the highest increase in headcount to 11,000," said Mr Ranjit Narasimhan, HCL, BPO Head.

"HCL has added 24 new customers. Our top 20 customers who contribute to 50 per cent of our revenue have outpaced the growth of the company," said Mr Nayar.

When asked about the attrition rates in the industry, Mr Shiv Nadar, Chairman and CEO, HCL Technolgies said, "Since three-fourth of our business is voice centric, attrition rates are bound to be high in such services. So we have reduced our voice centric business by 25 per cent to expand our business in other areas."

Other forays

Commenting on the company's expansion plans in other markets, Mr Nayar confirmed that the company had forayed into China and Korea. The company has already got approval for SEZs in Chennai, Bangalore and Noida.

In the first phase of its Noida SEZ, the company has a capacity of 50,000 seats and about 100 acres of land to be utilised for capacity expansion.

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